An observed trend between base metals anomalism in soils and previously identified magnetic and gravity anomalies within inferred Adelaidean basement metasediments present within the eastern part of Mongolata EL 3164 provided the impetus for the licensees' successful application to secure a drilling programme subsidy from funds being allocated through Year 4 of the PIRSA-managed PACE Initiative. The overall target for the Mongalata area is epithermal gold and base metal mineralisation derived from the White Dam granitoid intrusive structure located on the eastern side of the tenement. This could include greisen or skarn replacement type mineralisation formed in surrounding suitable host rocks, or formed in potentially favourable dilatational zones which may have been generated by structural disruptions occurring prior to or during emplacement of the White Dam intrusion during the Cambro- Ordovician Delamerian Orogeny. Previous drilling done further west than the proposed PACE project drilling had encountered calc-silicate units indicative of active skarn development relating to the White Dam intrusion. During March 2007 six angled RC percussion drillholes (two being re-collared and cased higher up to overcome collapsing wet alluvial soils) totalling 2206 m of penetration were completed. The stratigraphy intercepted in all holes was simple and consistent. Hole RC07MO-01, the easternmost, was closest to the White Dam intrusion and visually reflected this proximity by virtue of appearing thermally metamorphosed. This appearance weakened in those holes drilled further away from the intrusion. At approximately 40 m in thickness, the depth of the Murray Basin cover was as expected. The mostly unconsolidated, poorly sorted sediments suggest periodic deposition in a medium to high-energy environment. Broad basal clay zones may represent (paleo) deep weathering of the Adelaidean basement, and common maghemite-quartz rich pebble horizons suggest that at times a subaerial environment existed where erosion of past lateritic soils or gossan/ironstone exposures occurred. Within the Adelaidean basement, continuity, thickness and composition of the sediments indicates that drilling probably pierced the Saddleworth Formation (or equivalent) within the upper Burra Group. Quartz and quartz-carbonate veins with weak sulphide associations are scattered throughout the Adelaidean strata. Pyrite is the dominant sulphide, with lesser pyrhotite and rare chalcopyrite. The drilling failed to locate mineralization of economic significance. Weakly anomalous copper values occasionally evident in the Adelaidean sediments tend to coincide with sulphur increases in the geochemistry, and are probably related to the weak chalcopyrite mineralisation within quartz and quartz-carbonate veining. Chemical anomalism within the calcite portion of the drill cuttings maintained a similar mobile element enrichment to that recognized in the initial soil data. The lack of success from the drilling means that the calcrete/soil anomalism cannot be explained by leaching from an immediately underlying or adjacent basement source. Perhaps erosion, transportation and accumulation of mineralised material once took place along paleodrainage pathways weakly evident in the lay of the land, and are the reason for such anomalism. However, if the geochemical anomalies' source is to remain related to the basement gravitational and magnetic anomalism, then it must remain relatively proximal to the existing drill holes. The water table depths range between 42 and 80 m throughout the drilled area, however, some moisture did exist in the poorly consolidated sediments above these levels. Strong inflows were met in a number of the holes, particularly in RC07MO-03R and RC07MO-06R. Water samples from RC07MO-01 were collected from flows at 90 m and 200 m depth, and were sent off for a comprehensive quality analysis. Results indicate that the water quality is appropriate for stock drinking supply purposes, but is too high in iron and too saline to be suitable for human consumption. The fact that water table depths, quantity of groundwater inflows and the depths of the flows were highly variable between drillholes was surprising, given the proximity of the drillhole collars to each other. Natural porosity and permeability of the bedrock slates/silts are very low, so the flows are probably associated with later fracture zones. If not, then such groundwater must be held in bedding planes spaces and joints, which would mean that folding, or at least a variable dip in the bedding, must exist to account for such variation in depths and volumes of water flow.